MTNL’s subscribers have to wait for 4G services till 2017

Telecom analysts however say that the state-owned telco has fragmented spectrum in the 900 Mhz band, thus launching a high-speed data service would be no less than a challenge for the telco.Muntazir Abbas | ETTelecom | Updated: October 19, 2015, 17:51 IST

MTNL has been without a CEO ever since former chairman & managing director A K Garg retired on June 1.NEW DELHI: State-run Mahanagar Telephone Nigam Limited (MTNL) will not be able to launch fourth-generation (4G) services across its operational services areas- Delhi and Mumbai - anytime soon, its top official said.

While a top executive of state-owned BSNL has said that it is planning 4G rollout over frequencies in 2500 Mhz band in 2016, MTNL believes that using airwaves in lower band such as in 900 MHz would be a fit case for it.

“MTNL currently does not hold liberalized spectrum and wants to launch 4G services over spectrum in lower band side - 900 Mhz band which is coming up for renewal in 2017,” a top executive, who do not wished to be named, told ET.

MTNL offers third-generation or 3G services over 2100 Mhz band.

Telecom analysts however say that the state-owned telco has fragmented spectrum in the 900 Mhz band, thus launching a high-speed data service would be no less than a challenge for it.

The state-owned telecom service provider that operates in the two metropolitans has 6.2 MHz of airwaves in 900 MHz spectrum band in each of the two circles but does not have liberalized spectrum to plug and play any service unlike private players who have got liberalized airwaves in recent auctions.

The telecom regime allows service providers to offer service of choice over liberalized spectrum they hold till the time of expiry of license without requiring any approval from the regulator. A telco can liberalise its spectrum holding by paying the market price for it.

“We have to get permission from the government for launching any service in the existing spectrum holding. We are expecting this (4G) to happen not before 2017— a time when the spectrum will come up for renewal,” the person added.

MTNL's wireline business contributes a majority of close to 80% of its overall revenues and the telco manages 2,000 cell sites in the two metropolitans.

The state-promoted telco is also likely to consider spectrum sharing and trading only after getting spectrum extension in 2017.

BSNL is however in talks with telecom operators for spectrum sharing.

MTNL's overall revenue increased marginally by Rs 34 crore to close the fiscal year ended March 2015 at Rs 3,800 crore.

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After PSU banks, the government is likely to infuse capital in two chronically ill telecom PSUs BSNL and MTNL, and the Union Cabinet is likely to take a decision on 4G spectrum allocation to them by the third week of the current month after DoT places the note before it for consideration.

At a high-level meeting at the PMO late Tuesday, it was also decided that the two telcos will frame a Voluntary Retirement Scheme (VRS) to reduce their employee strength, which will be followed by a reduction in the retirement age to 58.